A home equity line of credit (HELOC) is a form of revolving credit in which your home serves as collateral. Like a credit card, a home equity line of credit lets you borrow up to a preset limit. When you pay down the credit line, you can use the credit again as you need it. Many homeowners use home equity credit lines to pay for major items such as education, home improvements, or medical bills. They can also be a helpful tool for debt consolidation at a lower interest rate and may offer tax benefits.

With a HELOC, you will be approved for a specific amount of credit. The potential credit line is determined by taking a percentage of the home's appraised value (say, 85%) and subtracting from that the balance owed on the existing mortgage. For example:

Appraised value of home

$100,000

Percentage

x 85%

Percentage of appraised value

= $ 85,000

Less balance owed on mortgage

- $ 40,000

Potential line of credit

$ 45,000

RiverFall offers (2) different types of adjustable rate HELOCs:

With the first, the interest rate is adjusted quarterly with level payments (1.25% of balance). The credit limit is up to 85% of appraised value.The maximum term is 7 years with a 5 year draw period.

With the second, the interest rate is adjusted monthly with interest only payments. The credit limit is up to 95% of appraised value. The maximum term is 25 years with a 10 year draw period.

As an added convenience, we offer HELOC checks. This means that once your home equity line of credit has been established, you can simply write a check yourself when funds are needed instead of making a trip to the credit union. You'll have greater flexibility, especially when the project is ongoing or the full costs are yet to be determined.

At RiverFall, you’re more than your score.We look at your entire story – your employment, residency, payment history with RiverFall and others, etc. – in addition to your credit score.We want you to qualify for the best possible rate, and we won’t rely solely on an arbitrary number.We want to lend to you!